UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 38037 / December 10, 1996
INVESTMENT ADVISERS ACT OF 1940
Release No. 1599 / December 10, 1996
ADMINISTRATIVE PROCEEDING
File No. 3-9126
In the Matter of : ORDER MAKING FINDINGS
: AND IMPOSING REMEDIAL
FREDERICK V. DONA, JR., : SANCTIONS
:
Respondent. :
I.
On September 30, 1996, the Securities and Exchange
Commission ("Commission") instituted public administrative
proceedings against Frederick V. Dona, Jr. ("Dona"), pursuant to
an Order Instituting Public Proceedings And Notice of Hearing
Pursuant to Section 15(b) of the Securities Exchange Act of 1934
and 203(f) of the Investment Advisers Act of 1940 ("Order
Instituting").
II.
Subsequent to the institution of these proceedings, Dona
submitted an Offer of Settlement, which the Commission has
determined to accept. Solely for the purpose of these
proceedings, and any other proceedings brought by or on behalf of
the Commission or in which the Commission is a party, Dona,
admitting the findings set forth in this Order and admitting the
jurisdiction of the Commission over him and over the subject
matter of these proceedings, consents to the entry of this Order.
III.
On the basis of the Order Instituting and Dona's Offer of
Settlement, the Commission finds that:
1. From in or about May 1985 until in or about May 1994,
Dona was a registered representative associated with Mutual
Life Insurance Company of New York ("MONY"), a mutual life
insurance company. During the relevant period, MONY was an
investment adviser registered with the Commission pursuant
to Section 203 of the Advisers Act and, until 1991, a
broker-dealer registered with the Commission pursuant to
Section 15 of the Exchange Act.
2. From in or about May 1985 until May 1994, Dona was also
associated with MONY Securities Corp. ("MSC"), which was and
is, a broker-dealer registered with the Commission pursuant
to Section 15 of the Exchange Act. MSC, which is controlled
by MONY, is in the business of distributing investment
company and other securities on a retail basis.
3. On January 13, 1995, Dona pled guilty to one count of
knowingly causing others to falsify facts and knowingly
concealing facts in documents required to be kept under
Title I of the Employee Retirement Income Security Act of
1974 ("ERISA"), 18 U.S.C. 1027. United States v. Dona,
94-CR-237 (N.D.N.Y. Jan. 13, 1995). Dona was sentenced to
two years probation on May 12, 1995 and ordered to pay a
fine of $6,500. Prior to sentencing, Dona made full
restitution in the amount of $47,000 to MONY.
4. In his plea agreement and plea allocution, Dona
admitted that:
a. on or about July 5, 1989, while employed at MONY
and MSC, he knowingly and willfully caused others to
create and transmit, to a trustee of the Crouse Medical
Group, P.C. Employees' Defined Contribution Pension
Plan ("the Crouse Plan"), a letter ostensibly signed by
a MONY general manager, which purported to confirm the
values of the MONY MAX group annuity contracts in which
funds of the Crouse Plan were invested; and
b. he knew and concealed the fact that this letter
overstated the balances for the MONY MAX contracts
recorded by MONY and that the signature of the MONY
general manager on that letter was not genuine.
5. In his plea agreement, Dona also admitted that the
false and misleading letter was sent to the Crouse Plan in
connection with his scheme to defraud MONY of commission
monies.
6. Dona was a registered representative associated with a
broker-dealer and investment adviser at the time of the
conduct for which he was criminally convicted.
IV.
ORDER
Based on the foregoing, the Commission deems it appropriate
and in the public interest to accept the Offer of Settlement of
Frederick V. Dona, Jr., and accordingly,
IT IS HEREBY ORDERED, that Frederick V. Dona, Jr. be and
hereby is barred from association with any broker, dealer,
municipal securities dealer, investment adviser, or investment
company.
For the Commission, by its Secretary, pursuant to delegated
authority.
Jonathan G. Katz
Secretary